Yet the news came on the same day that Primark announced a bumper 16% jump in sales for the 16 weeks to January 7.

The period was a busy one for store openings as the company unveiled two new shops in the UK, including a flagship store on Edinburgh's Princes Street.

Stores also opened in Spain, Germany, Portugal and the Netherlands, bringing the total number of openings for the quarter to nine. It has 156 stores in the UK.

Clive Black, retail analyst at Shore Capital, reckons the difference between the two chains is stark.

He said: “Primark offers good value, good products and stores that are very well located and look the business. Peacocks, on the other hand, is a load of cheap clobber. It doesn’t help that Peacocks is burdened by big debts, either.”

Primark’s owner, Associated British Foods, described the chain’s performance as “exceptional”.

Together with strong growth in its sugar business and an improved performance at its Kingsmill-branded Allied Bakeries ­division, ABF’s sales rose 12% higher during the 16 week period.

Its Twinings and Ovaltine brands were buoyed by increasing demand for tea in the United States and Ovaltine hot malt drinks in developing markets.

But difficult trading conditions for Australian subsidiary George Weston Foods were compounded by a lack of efficiency driving up costs at a new meat factory in Castlemaine, Australia.

The best performances for the group came from the agriculture and sugar divisions, with revenue growth during the period at 22% and 21% respectively.

Falling cotton prices also look set to help Primark, with the benefits of lower input costs expected to ease pressure on its margins.

Looking ahead, Associated British added: "We expect growth in sales and adjusted operating profit in the coming year, with the profit improvement weighted towards the second half."

Peacocks is among a wave of businesses in trouble after ­insolvency group Begbies Traynor revealed a 24% surge in firms in critical distress in the final three months of 2011.

The report warns small regional retailers are the most vulnerable as they fight “a losing battle” with declining consumer spending and the likes of online giant Amazon.

Executive chairman Ric Traynor said: “Trends in the Red Flag Alert suggest we are likely to be approaching a crucial period for businesses large and small.

“Escalating levels of distress indicate we may be getting close to the bottom of the economic cycle where so-called zombie businesses, which are inherently insolvent but have benefited from big support measures such as Government’s Time To Pay scheme, eventually fail.”